Council plans 5% tax hike and job cuts to tackle £150 million deficit
By Mark Smith - Local Democracy Reporter 27th Jan 2026
A maximum council tax hike of nearly five per cent, job cuts, and overhaul of the council's structure and services look poised to be approved to help tackle a £150 million funding black hole.
Town Hall bosses at Cheshire West and Chester Council (CWAC) are also expected to sign off on £33 million in savings as part of this year's budget when they meet in February.
Included in the budget are a tax rise of 4.99 per cent, made up of a basic rise of 2.99 per cent – the highest level possible without triggering a local referendum. The other two per cent is to fund adult social care.
This would see a Band D bill of £2,076.79, an increase of £98.70.
Cost-cutting plans would also see 98 job losses, with a reduction of 38 in 2026/27. The council said a number of the posts are already vacant.
The authority faces a funding gap of £150 million over the next four years. It said the gap will be fully bridged in 2026/27 by the planned savings proposals, along with £7.5 million of additional income from council tax and business rates.
Also among the cost-saving measures are what it said was a 'review of the council's organisational structure'.
A rethink of how some services are delivered is also planned, with 'invest to save' measures earmarked to save it money in the long run – particularly in social care, which it said continues to become more demanding and complex and takes up significant resources.
A report to the council said: "There remain some difficult choices to make, including reviewing the overall size and shape of the council and the level of discretionary services it is able to provide within the funding available."
The report said it would also explore transforming its approach to engagement with residents by embedding 'digital-first, structured, and centralised practices' in order to deliver what it called 'faster, more consistent, and less resource-intensive services'.
It would also use digital technology such as artificial intelligence and data to generate 'efficiencies in business processes'.
The budget proposals will go before CWAC's scrutiny committee on Monday, February 2, before going to the ruling cabinet and then full council later in the month.
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